2 Sources
[1]
Vercel Triples Valuation to $9 Billion With Accel Investment
Vercel, a startup that helps companies develop web and artificial intelligence applications in the cloud, is raising hundreds of millions of dollars at a valuation of about $9 billion, according to people familiar with the matter. Accel, an early venture capital backer of companies like Slack and Dropbox Inc., is leading the investment, the people said, asking not to be named discussing private information. A spokesperson for Vercel didn't respond to a request for comment. Accel declined to comment. The Information earlier reported some details of the company's fundraising plans.
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Report: Vercel is raising new funding at $9B valuation amid AI growth - SiliconANGLE
Report: Vercel is raising new funding at $9B valuation amid AI growth Front-end development startup Vercel Inc. is reportedly raising hundreds of millions of dollars in new funding. Sources told Bloomberg today that Accel is leading the investment. The cash infusion is expected to value Vercel at about $9 billion, nearly triple what it was worth following its most recent $250 million raise last May. That funding round was also led by Accel. The company commercializes Next.js, a popular open-source framework for building web application interfaces. The technology can offload processing tasks that are usually done in the user's browser to website operators' servers. That allows those tasks to be completed faster, which reduces webpage loading times. Vercel provides a cloud service that allows developers to quickly update Next.js-based websites. According to the company, its software can complete code rollouts that usually take minutes in a few seconds. It achieves that speedup partly by removing the need to change a website's configuration settings before an update. It also offers several other development tools. According to the company, those products ease tasks such as managing the database in which a web application keeps its information and rolling back faulty software updates. Reports that Vercel is seeking new capital first emerged two weeks ago. The Information reported at the time that the fundraising push comes amid a "growth spurt" across the company's services, including its lineup of artificial intelligence tools. Vercel's AI suite has emerged as a core focus of its product development efforts. Earlier this month, the company launched an AI programming assistant called v0. It can surface interface design ideas and turn those ideas into functioning code. Additionally, v0 can scan an existing website interface's code for technical issues. In May, Vercel debuted a service called AI Gateway. It enables developers to quickly change the AI model used by a web application. If the large language model that powers a chatbot goes offline, AI Gateway can reroute requests to a different algorithm. Another recent addition to the company's lineup of AI services provides developers with access to graphics processing units. According to Vercel, its pricing is up to 90% lower than what the competition charges. The company only bills customers for GPUs assigned to a web applications when those chips are actively used. The new funding round reportedly in the works should make it easier for Vercel to procure GPUs. Additionally, it could enable the company to accelerate its product development efforts by making acquisitions. In January, Vercel bought the startup behind Tremor, a popular open-source tool for building website interfaces.
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Vercel, a cloud-based web and AI application development platform, is raising hundreds of millions in a funding round led by Accel, tripling its valuation to $9 billion. The company's growth is driven by its Next.js framework and expanding AI tools.
Vercel, a startup specializing in cloud-based web and artificial intelligence application development, is on the verge of a significant financial milestone. The company is reportedly raising hundreds of millions of dollars in a new funding round that will value it at approximately $9 billion 1. This valuation represents a remarkable tripling of the company's worth since its previous funding round in May of the previous year.
The investment is being spearheaded by Accel, a renowned venture capital firm known for its early backing of tech giants like Slack and Dropbox 1. Accel's continued support of Vercel underscores the startup's potential in the rapidly evolving landscape of web development and AI integration.
At the heart of Vercel's success is its commercialization of Next.js, an open-source framework that has gained significant traction in the web development community. Next.js optimizes web application interfaces by shifting certain processing tasks from the user's browser to the website operators' servers, resulting in faster load times and improved performance 2.
Source: SiliconANGLE
Vercel's recent growth spurt is largely attributed to its expanding suite of AI tools. The company has made significant strides in integrating AI capabilities into its product lineup:
v0 AI Programming Assistant: Launched recently, v0 can generate interface design ideas and convert them into functional code. It also has the capability to analyze existing website interfaces for technical issues 2.
AI Gateway: This service allows developers to swiftly switch between AI models in web applications, providing flexibility and redundancy in AI-powered features 2.
GPU Access Service: Vercel offers developers access to graphics processing units at competitive prices, charging only for active usage. This service is crucial for AI-intensive applications 2.
The substantial funding round is expected to fuel Vercel's expansion strategy. In January, the company acquired the startup behind Tremor, a popular open-source tool for building website interfaces 2. This acquisition highlights Vercel's commitment to enhancing its technological capabilities and market position.
With the new influx of capital, Vercel is well-positioned to further its product development efforts and potentially make more strategic acquisitions. The company's focus on AI-driven tools and services aligns with the growing demand for intelligent, efficient web development solutions in an increasingly AI-centric tech landscape.
As Vercel continues to innovate and expand its offerings, it is poised to play a significant role in shaping the future of web development and AI integration in cloud-based applications. The substantial valuation increase and strong investor backing serve as testament to the company's potential and the market's confidence in its vision.
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